Correlation Between Platinum Asset and Indiana Resources
Can any of the company-specific risk be diversified away by investing in both Platinum Asset and Indiana Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Platinum Asset and Indiana Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asset Management and Indiana Resources, you can compare the effects of market volatilities on Platinum Asset and Indiana Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Platinum Asset with a short position of Indiana Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asset and Indiana Resources.
Diversification Opportunities for Platinum Asset and Indiana Resources
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Platinum and Indiana is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asset Management and Indiana Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indiana Resources and Platinum Asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Platinum Asset Management are associated (or correlated) with Indiana Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indiana Resources has no effect on the direction of Platinum Asset i.e., Platinum Asset and Indiana Resources go up and down completely randomly.
Pair Corralation between Platinum Asset and Indiana Resources
Assuming the 90 days trading horizon Platinum Asset Management is expected to under-perform the Indiana Resources. In addition to that, Platinum Asset is 1.47 times more volatile than Indiana Resources. It trades about -0.1 of its total potential returns per unit of risk. Indiana Resources is currently generating about 0.13 per unit of volatility. If you would invest 5.73 in Indiana Resources on October 22, 2024 and sell it today you would earn a total of 0.67 from holding Indiana Resources or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Platinum Asset Management vs. Indiana Resources
Performance |
| Timeline |
| Platinum Asset Management |
| Indiana Resources |
Platinum Asset and Indiana Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asset and Indiana Resources
The main advantage of trading using opposite Platinum Asset and Indiana Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asset position performs unexpectedly, Indiana Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Indiana Resources will offset losses from the drop in Indiana Resources' long position.| Platinum Asset vs. Step One Clothing | Platinum Asset vs. Advanced Braking Technology | Platinum Asset vs. Bailador Technology Invest | Platinum Asset vs. Centuria Industrial Reit |
| Indiana Resources vs. Firstwave Cloud Technology | Indiana Resources vs. Ainsworth Game Technology | Indiana Resources vs. Computershare | Indiana Resources vs. Platinum Asset Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |